People who own vacation homes will not have to report any of their income as long as they rent it out for less than 15 days yearly. It is tax-free!

You may also claim qualified mortgage interest, property taxes, and casualty losses by claiming deductions on a Schedule A.

Once renting a vacation home goes beyond fourteen days, the law is clear. All rental income is taxable and filed using a Schedule E.

The rules for claiming expenses can get complicated. How much time the owner spends in the home will affect how much you can legally deduct from your taxes and how you report them.

Best to talk with a Tax Pro.